RWC – Economic boon for New Zealand

If you rented out your property for the RWC there may be tax implications to consider.  If you are unsure how the RWC effects your tax and accounts please feel free to give Ezi Accounts a call to assist with your accounting service.  We can give you a fixed price quote and guarantee a 15 day turnaround on any returns.  You may even be eligible for a refund.

The Rugby World Cup was set to have a “profound” economic impact, as big-spending international visitors flock to New Zealand for the largest event ever staged in the country, according to a study.

The study, carried out by Britain’s Coventry University Business School, estimated 95,000 overseas visitors would spend $654 million (NZ$782.5 million) during the six-week tournament.

It said the long-term World Cup legacy for the host nation through tourism and business development would be even more valuable, totalling an estimated $1.21 billion.

“The benefits of RWC 2011 will be profound and far-reaching,” said the report, commissioned by tournament sponsor MasterCard.

“Such benefits will be both short- and long-term, local, global and felt both within the sport of rugby union and the global sport economy.”

It said the Rugby World Cup, billed as the third largest sporting event in the world, was expected to attract a cumulative global television audience of more than four billion people, providing invaluable exposure for New Zealand.

In total, rugby fans were set to down 7.5 million litres (13.2 million pints) of beer and 7.35 million pies and sausages as they cheered on their teams.

The study’s estimated spend from overseas visitors of NZ$782.5 million exceeds a forecast of NZ$700 million released by the Reserve Bank of New Zealand earlier this year.

Whatever the final figure, the World Cup will provide a welcome boost to New Zealand’s farm-based economy, which is struggling to shake off the impact of a lengthy recession that ended in mid-2009.

The inflation rate hit a 21-year high of 5.3 percent in the 12 months to June, as rising fuel and food prices pushed up the cost of living, while economic growth in the year to March was a modest 1.5 percent.

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